Authored By: Sarah
11 Jul 2024

 Combined Heat and Power Market Size to grow by USD 9.35 billion between 2024-2028

According to a research report “ Combined Heat and Power Market” by Product (Natural gas, Coal, Others) End-user (Industrial, Commercial, Residential) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 9.35 billion, at a CAGR of  6.29% during the forecast period. The International Energy Agency (IEA) reports that the global economy expanded at an annual average rate of 3.4% from 2017, leading to a 2.1% increase in energy demand compared to the previous year. This trend is projected to continue, with energy demand anticipated to rise by over 25% by 2040. China and India are expected to account for more than 40% of this growth. Additionally, electricity demand has already doubled between 1990 and 2016, surpassing the growth rate of other energy sources. Over the next 25 years, from 2017, global electricity demand is projected to grow at a rate twice as fast as overall energy demand.

Browse market data tables, figures, and in-depth TOC on “Combined Heat and Power Market” by Product (Natural gas, Coal, Others) End-user (Industrial, Commercial, Residential) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Product, the Natural gas segment is projected to dominate the market size in 2024

In the global combined heat and power (CHP) market, the industrial sector holds a pivotal position, driven by substantial demand for CHP systems in industries such as manufacturing, chemical processing, refining, and pulp and paper mills. CHP systems offer a highly efficient and sustainable energy solution for industrial facilities, delivering both electricity and heat in a single integrated system. One of the primary advantages of CHP systems in the industrial sector is their superior energy efficiency. Traditional power generation methods, including separate electricity generation and on-site boilers for heat, can result in substantial energy losses. By contrast, CHP systems capture and utilize waste heat generated during electricity production, significantly reducing energy waste and enhancing overall operational efficiency.

By End-user, Industrial  segment is expected to hold the largest market size for the year 2024

In the global combined heat and power (CHP) market, natural gas holds a significant position due to its suitability for CHP systems. CHP technology, also recognized as cogeneration, efficiently generates both electricity and heat from a single fuel source. Natural gas is a preferred choice for CHP due to its clean combustion properties, high efficiency, and widespread availability. The environmental benefits of natural gas in the CHP market are noteworthy. Compared to other fossil fuels, natural gas combustion results in fewer greenhouse gas (GHG) emissions and air pollutants. For instance, a natural gas-powered CHP system can substantially decrease carbon dioxide (CO2) emissions compared to separate power and heat generation technologies. This environmental friendliness of natural gas is a crucial advantage in today's market.

APAC is forecasted to hold the largest market size by region in 2024

In the global combined heat and power (CHP) market, the Asia-Pacific (APAC) region holds a substantial position in 2023. The International Energy Agency (IEA) reports a 7.13% increase in APAC energy consumption in 2022 compared to 2020. Additionally, global electricity demand rebounded in 2021, surpassing its pre-pandemic levels, with electricity consumption in Japan experiencing significant growth. From 828.76 TWh in 1990 to 1004.8 TWh in 2020, Japan's electricity consumption expanded by 17.51%. Consequently, the country's electricity production has risen, driving the demand for energy and fueling the expansion of the CHP market in the region.

The Combined Heat and Power Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • ABB Ltd.
  • Ameresco Inc.
  • Capstone Green Energy Corp.
  • Caterpillar Inc.
  • Cummins Inc.
  • FuelCell Energy Inc.
  • General Electric Co.
  • Helec Ltd.
  • HoSt Holding B.V.
  • Kawasaki Heavy Industries Ltd.
  • Kraft Power Corp.
  • Mitsubishi Heavy Industries Ltd.
  • MTT bv
  • Robert Bosch GmbH
  • Rolls Royce Holdings Plc
  • Siemens Energy AG
  • Traton SE
  • Veolia Environnement SA
  • Wartsila Corp.
  • 2G Energy AG
.

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Research Analysis Overview

The Combined Heat and Power (CHP) market is witnessing significant growth due to the increasing demand for energy efficiency and environmental sustainability. Industrial boilers and power plants are major consumers of CHP systems, as they can generate both electricity and heat from a single fuel source, reducing energy waste and greenhouse gas (GHG) emissions. Environmental regulatory pressures and the need to reduce GHG emissions are key drivers for the adoption of CHP systems. Natural gas supply is a popular fuel choice for CHP due to its availability and relatively low carbon content. However, the volatility of natural gas prices and the increasing focus on renewable energy sources like hydrogen, fuel cells, wind turbines, and solar panels, are also influencing the market. Discretionary spending on energy efficiency projects has been impacted by lockdowns and economic uncertainty, but essential sectors like prisons, schools, universities, hotels, laundries, nursing homes, and hospitals continue to invest in CHP systems to reduce energy costs and ensure reliable electricity supply. Utilities are also investing in CHP systems using reciprocating engines, gas turbines, and biogas, as well as implementing gas pretreatment technologies to optimize fuel efficiency and reduce emissions. The future of CHP is likely to be shaped by advancements in technology, regulatory policies, and the availability of renewable fuels.

Market Research Overview

The Combined Heat and Power (CHP) market is experiencing significant growth due to the increasing adoption of renewable energy sources for power production. Renewable energy sources like wind energy and solar power photovolvolics are increasingly being used in CHP systems to generate thermal energy and electricity simultaneously. This approach enhances energy efficiency, reduces greenhouse gas emissions, and lowers energy costs for commercial buildings and industrial operations. Solar and wind are not the only sources for CHP. Natural gas, steam, water, and waste heat are also used in CHP systems. CHP systems use turbines, reciprocating engines, and fuel cells to convert various forms of energy into electricity and thermal energy. The natural gas industry is also investing in CHP to improve the efficiency of natural gas supply and reduce emissions from natural gas combustion. Environmental regulatory pressures and energy efficiency considerations are driving the adoption of CHP systems. Commercial and industrial segments, including prisons, schools, universities, hotels, laundries, nursing homes, and hospitals, are major consumers of CHP systems. The residential segment is also showing growing interest in CHP systems. The CHP market is diverse, with segments like Combined Cycle, Biomass, and Hydrogen fuel cells. CHP systems provide reserve capacity to electricity supply and help stabilize the electricity grid. The natural gas supply and discretionary spending are key factors influencing the growth of the CHP market. The market is expected to continue growing, with innovations in technology and increasing focus on reducing greenhouse gas emissions.

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Email: media@technavio.com
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